SR-100907-1G~_
c;cYor City Council Report
Santa Monica
City Council Meeting: October 9, 2007
Agenda Item: ~ f
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: License Agreement with the Bayside District Corporation of City-Owned
Property Located on 5th Street and Arizona Avenue for an Ice Skating Rink
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a License Agreement with the Bayside District Corporation, for use of City-
owned property located south of Stn Street and Arizona Avenue, with addresses of 1324
and 1326 5th Street, for a seasonal ice skating event.
Executive Summary
On September 11, 2007, the City closed escrow on seven lots located on 5th Street,
south of Arizona Avenue. The Bayside District Corporation (BDC) is requesting
permission to use a portion of the property, now used for surface parking, located at
1324 and 1326 5th Street, for a holiday ice skating event. BDC would need the site
beginning November 1, 2007 through January 18,-2008 for set-up, operation and take-
down. The ice skating rink would be open to the public from November 16, 2007
through January 7, 2008. BDC will be contracting for management of the ice skating
rink with Frozen Water, L. P. BDC is investing approximately $200,000 in the project
and will receive 10% of the net revenue from skating lessons and group programming
and the sale of skating-related souvenirs. BDC and the operator would provide
insurance in amounts required by the City's Risk Management Division. The License
would be made available to BDC at $1.00.
The impact to the City and Agency is approximately $18,000 in foregone parking
revenue and $20,000 for other related support to the project. Staff feels that the level of
public benefits supports the City and Agency fiscal support to the project.
Discussion
The operator will provide aturn-key operation for the ice-rink. BDC will be responsible
for marketing, decorations, electrical, water, telephone, trash and creation of the sand
base.
The ice rink will offer casual skating, skating lessons, sale of skating-related souvenirs
and merchandise, and entertainment programming, including special programs
benefiting the Santa Monica Boys and Girls club, PAL, YMCA, and other community
groups. The minimum proposed operating hours of the ice skating rink are tentatively
set for:
DAYS OF OPERATION HOURS OF OPERATIONS
Monday through Thursday (school days) 4:00 p.m. - 9:00 p.m.
Friday (school day) 4:00 p.m. - 10:00 p.m.
Saturdays and all school holidays 10:00 a.m. - 10:00 p.m.
Sundays 71:00 a.m. - 7:00 p.m.
Christmas Eve Close at 7:00 p.m.
Christmas Day 7:00 p.m. - 10:00 p.m.
New Years Eve /Day 17:00 a.m. - 9:00 p.m.
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The operator will be paid a fee for set up and installation of the ice rink, and will retain a
portion of the skating revenue and net proceeds of revenue generated from lessons and
the sale of souvenirs. BDC's sponsorship includes an investment of approximately
$200,000 in the ice rink development; therefore, BDC will receive ten percent (10%) of
the net revenue from skating lessons and group lessons and proceeds from skating-
related souvenirs, and a portion of the revenue from skating. The proposed agreement
between the BDC and Frozen Water, L. P. is contingent upon Council's authorization of
the proposed License Agreement. BDC expects about 25,000 skaters during the eight
week operation. Rates charged to skaters and other charges for lessons and group
programming have yet to be determined.
Currently, Parking Valet Services manages the parking on the site under a license
agreement with the City for which it will be paying the City $6,000 per month. The
company will be,given notice 30 days in advance to temporarily vacate the site of the
event so it can make other arrangements with those who park on the lot.
In accordance with Section 3 of the Services Agreement between the City of Santa
Monica and Bayside District Corporation, executed December 3, 2004, the BDC is
responsible for promoting and continued economic revitalization of the Downtown as
well as programs, projects, and services that benefit Santa Monica residents, Downtown
merchants, property owners, customers and visitors. The management of the ice
skating rink project is consistent with the roles and responsibilities of the BDC.
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Staff recommends that the BDC pay a nominal fee of $1.00 as consideration for the City
granting the proposed License Agreement for the use of the site, in recognition that this
will be an event open to the entire community at a low cost, including special
programming for community groups.
Budget/Financial Impact
The City will forego .approximately $18,000. in proceeds from the parking operator
during the time the ice rink is in operation. However, since the property was recently
acquired, no revenues from the Licensing Agreement were included in the FY 2007-08
budget. Revenue budget changes relating to the agreement will be included with the
Midyear Report. In addition, it is proposed that the Redevelopment Agency, as a
sponsor for this community event, will contribute to the effort by providing electricity to
the site, estimated at about $10,000, plus the .cost to install an electrical panel to
support the event estimated at up to $10,000.
Prepared by:
Donna Rickman
Senior Administrative Analyst
Approved: Forwarded to Council:
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Andy Agle, Director
Housing and Econo
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Reference Contract
No. 8834 (CCS)